It’s truly been a great joy in my life being able to work with my daughter, Danielle, and teach her investing. I find her intelligence and unique take on investing vital to keeping my own investing practice current.
Passing on this knowledge of investing – passed on to me by my mentor – is so important to me.
That’s what Rule #1 is all about – sharing this lifestyle with your children so your family will have financial freedom for years to come.
When Danielle and I first started our podcast, InvestED, she was a much different investor.
She had zero interest in learning how to invest. When I’d talk to her about financial statements, numbers, balance sheets, and margin of safety her eyes would just glaze over.
So…we had to come up with a different way to go about investing.
I knew that Danielle’s life would change if she learned how to invest on her own with confidence.
Danielle came up with a great way to go about investing. What she does is really cool, and it’s taught me a lot about the way I invest.
She knew that if investing was boring or painful, she’d quit. So she decided to look at investing as a practice. Just like running, yoga, or meditation, investing is a practice. It’s something that you do every day because it makes your life better.
She’s become a great investor and she does it in her very own way, using the principles of Rule #1 Investing.
In our weekly podcast, we’ve talked for years about investing. One of the main things that we always come back to is that you need to invest in the things that you love and where your values lie.
She’s become very personally engaged with her money and she’s investing in companies that are doing great things and will be around in ten years. The best investing is putting your money where your values are.
Danielle was recently featured in this CNBC article discussing her investing journey.
I’ve learned so much from writing our book Invested: How Warren Buffett and Charlie Munger Taught Me to Master My Mind, My Emotions, and My Money (with a Little Help from My Dad) with her and from doing the podcast with her for the past 4 years. We’ve had so many good conversations on investing and life.
When everything boils down, investing is a pretty simple concept. Your goal with investing should always be to buy companies (not stocks, but companies) that are easy to understand. You want to buy these companies to have a durable competitive advantage that protects it from competition in the future. You want the company to have trustworthy management. Finally you want it to be priced 50% off to its true value (you buy it on sale).
So, how can you make investing a practice for you? How can you turn investing into something that you do every day?
Make sure you take a look at the article on CNBC on Danielle’s investing practice.
Phil Town is an investment advisor, hedge fund manager, 3x NY Times best-selling author, ex-Grand Canyon river guide and a former Lieutenant in the US Army Special Forces. He and his wife, Melissa, share a passion for horses, polo and eventing. Phil’s goal is to help you learn how to invest and achieve financial independence. You can follow him on google+, facebook, and twitter.